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Alaska Air reports record first-quarter profit

Seattle-based Alaska Air Group earned a record profit in the first quarter, the company reported Thursday.

“This quarter’s results are due to strong passenger demand leading to a 16 percent, or $136 million, improvement in revenue,” Chairman and Chief Executive Officer Bill Ayer said in a statement. “This profit is especially gratifying given the significant increase in fuel costs. As we look ahead, fuel prices will be an even bigger challenge, but we are well positioned with our efficient fleet, diversified network and the fundamental changes we’ve made to our business over the past several years.”

Specifically, the company made $29.5 million, 80 cents per diluted share, excluding special fleet adjustment costs and adjustments for the current value of fuel hedges. That’s up from $13.1 million, 36 cents per share, in the first quarter of 2010 and above an initial expectation of 71 cents a share.

Including special factors, the company made $74.2 million, $2.01 per share, up from $5.3 million, 15 cents per share, a year earlier.

The company also noted that it cut its non-fuel costs by 6.3 percent and boosted employee productivity by 8 percent and that fuel hedges saved it $12.5 million in the first quarter. It has $1 billion in cash and marketable securities, prepaid $52 million of long-term debt during the quarter and reported an adjusted debt-to-total capitalization ratio of 65 percent — the lowest level since 1999.

Note: This is a seattlepi.com reader blog. It is not written or edited by the P-I. The authors are solely responsible for content. E-mail us at newmedia@seattlepi.com if you consider a post inappropriate.